NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated range and volume. Price worked higher overnight, balanced at times and then rallying early this morning. Overall the action was contained inside of the Monday range and as we approach cash open we are hovering near the Monday high.
The economic calendar features consumer confidence at 10am, a 4-week T-bill auction at 11:30am, and a 2-year Note auction at 1pm.
Yesterday we printed a double distribution trend down. The day/week began with gap down and drive lower. An initial responsive bid was overrun by more selling, pressing what looked like a morning liquidation. We probed new monthly lows, testing prices unseen since August 29th. Then, near the end of the session we ramped higher, back to the day’s midpoint.
Heading into today my primay expectation is for sellers to press into the overnight inventory and close the gap down to 5877.50. From here we continue lower, down through overnight low 5862.75 before two way trade ensues.
Hypo 2 buyers defend around 5883.25 and we press up through overnight high 5904.25. Look for sellers up at 5912.25 and two way trade to ensue.
Hypo 3 buyers gap-and-go higher, up through 5912.50 to target 5922 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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